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Health Care Tax Credits

110th Congress, 2007 - 2008

 

Introduced by Senator Mel Martinez (R-FL)

H.R. 914 "Tax Equity and Affordability Act of 2007"

Companion Bill Introduced by Representative Paul Ryan (R-WI)

Allows individual taxpayers a refundable tax credit for health insurance costs paid for the benefit of the taxpayer, the taxpayer's spouse, and dependents;
   
Requires business taxpayers who receive payments for certain employee health insurance coverage to file informational returns;
   
Directs the Secretary of the Treasury to make advance payments of health insurance tax credit amounts to health insurance providers;
   
Limits the tax exclusion for employer-provided health care coverage.
   

CAHC Position
This bill would create a refundable and advanceable tax credit for the low/moderate income to help them purchase health insurance. CAHC is a strong proponent of health care tax credits and supports this feature of the bill. Senator Martinez's bill also changes the tax treatment of health benefits. Currently all employees who receive coverage through an employer pay no state, federal or Social Security taxes on the income they use to purchase health benefits. The Martinez bill would limit this federal income tax exclusion to $5000 for an individual and $11,500 for a family. CAHC members are not of one accord on the wisdom of this cap and therefore remain silent regarding this provision.


Supplemental Materials

One-page summary of the legislation, as provided by the Office of Senator Martinez

 

Introduced by Senator Tom Coburn (R-OK)

   
Allows participants in high deductible health care insurance plans an increased tax deduction for contributions to a health savings account, and allows individual taxpayers a refundable tax credit for health insurance costs paid;
   
Requires states to establish and operate a qualified high risk pool or a state-designated alternative that ensures access to private health insurance for medically uninsurable individuals;
   
Establishes a Medicaid Advantage program to provide individuals a medical home where they receive a seamless continuum of medical care and care management that meets certain requirements;
   
Amends the Public Health Service Act to apply the laws of the primary state (as designated by the health insurance issuer) to individual health insurance coverage offered by that issuer in the primary state and in any secondary state if certain requirements are met;
   
Allows people to purchase health insurance accross state lines.
   

CAHC Position

CAHC supports three specific provisions of this legislation: Creation of a refundable and advanceable health care tax credit to help individuals afford private coverage; Recognition and support for the creation and funding of High-Risk Pools; and GIving consumers the option to purchase health insurance across state lines so they can find the best product for the budget and health care needs.

 

Introduced by Senator Richard Burr (R-NC)

* Is the same as Senator Burr's legislation but also repeals the alternative minimum tax

   
Provides a refundable tax credit of $2,160 for an individual and $5,400 for a family, funded by elemination of employee exclusion;
   
Sets forth requirements for certification of a state health insurance exchange.
   

CAHC Position
Each of these pieces of legislation would create a refundable and advanceable tax credit for the low/moderate income to help them purchase health insurance.

 

Introduced by Senator Max Baucus (D-MT)

   
Reauthorizes trade adjustment assistance and extends trade adjustment assistance to service workers, communities, firms, and farmers;
   
Increases the percentage of federal tax credit from 65% to 85%;
   
Makes technical adjustments to eligibility criteria;
   
Applies small group state rating laws to credit-eligible health plans.
   

CAHC Position
CAHC supports increases to federal tax credit percentage. Members would, however, like to see a refundable, advanceable health care tax credit provision incorporated into this bill. Tax credits are key to enabling individuals with low and moderate income to purchase health insurance.

 
 

 

Introduced by Senator Mike Enzi (R-WY)

   
Allows for the conversion of Medicaid and SCHIP program benefits into private health insurance;
   
Increases affordable options for working families to purchase health insurance through a standard tax deduction;
   
Ensures affordable health insurance to low-income individuals through a refundable, advanceable, assignable tax-based subsidy;
   
Provides cross-state pooling to reduce health care costs and increase accessability for small business owners, unions, associations,  and their workers, members, and families;
   
Increases access to primary care in rural areas by helping future doctors and nurses pay for their education, and gives seniors more options to recieve care in their homes and communities;
   
Emphasizes preventive benefits and regulation of chronic disease.
   

CAHC Position
CAHC applauds Senator Enzi's effort to produce a comprehensive health care reform package that encompasses private market methods to increase affordablity and accessability for the Nation's vulnerable populations.

Supplemental Materials

Summary as provided by Senator Enzi's Staff

 

 

Introduced by Senator Susan Collins (R-ME)

   
Provides tax credits to small businesses for qualified employee health insurance expenses, and for qualified health insurance;
   
Provides tax credits for individuals with long-term care needs and deductions for long-term care premiums;
   
Awards grants to states to assist in planning, developing, and operating qualified small employer purchasing groups for health insurance, and also to states, local governments, and nonprofit organizations to provide health insurance information to small employers;
   
Reforms the State Children's Health Insurance Program (SCHIP) to allow states to extend coverage to qualified children, parents, and pregnant women.
 

CAHC Position

The Coalition supports the tax credit provision of this bill. Providing a tax for small businesses is one of a few promising options to assist small business owners in purchasing health coverage for themselves and their employees. Data from the Congressional Research Service shows that small business owners and workers account for a significant percentage of uninsured individuals. In fact, 23.8 million uninsured people are self-employed or work for companies with fewer than 100 workers. 13.1 million uninsured are self-employed or work for companies with fewer than 10 workers. This group of uninsured cannot be ignored, and Congress has an obligation to assist small business owners and workers in affording health care coverage.

 

Supplemental Materials

CAHC Recomendations for Solutions to Assist Small Businesses in Affording Health Coverage


 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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